Rational Special Situations Income Fund (RFXIX | RFXCX | RFXAX)
Rational Special Situations Income Fund
Rational Special Situations Income Fund
Overview
RFXIX | RFXCX | RFXAX
The Rational Special Situations Income Fund seeks total return consisting of capital appreciation and income. The Fund invests primarily in non-agency residential mortgage-backed securities (“NARMBS”) but may also invest in other asset-backed securities.
Investment Strategy
Growth of $10,000 Investment: Ending September 30, 2019
Performance (%) Ending September 30, 2019
Annualized if greater than 1 year
| 1 Year | 3 Years | 5 Years | Since Inception | |
|---|---|---|---|---|
| Class I | 6.37% | 11.51% | 8.77% | 16.21% |
| Barlays US Agg TR Index | 10.30% | 2.92% | 3.38% | 4.14% |
| Bloomberg MBS TR Index | 7.80% | 2.32% | 2.80% | 3.42% |
| Class A | N/A | N/A | N/A | 0.09% |
| Class C | N/A | N/A | N/A | -0.07% |
| Barclays US AGG TR Index | N/A | N/A | N/A | 2.35% |
| Bloomberg MBS TR Index | N/A | N/A | N/A | 1.14% |
| Class A w/Load | N/A | N/A | N/A | -4.68% |
Maximum sales charge for Class A shares is 4.75%. Total annual fund operating expenses are 2.16%, 2.41%, and 3.16% for Class I, A, and C shares respectively. A maximum deferred sales charge of 1.00% on Class C shares applies to shares sold within 12 months of purchase. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Results shown reflect the waiver, without which the results could have been lower. A fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. To obtain the most recent month end performance information or the funds prospectus please call 800-253-0412 or visit www.RationalMF.com.
Performance & Risk Statistics: Ending September 30, 2019
| Class I | Barclays US Agg TR Index | Bloomberg MBS TR Index | |
|---|---|---|---|
| Cumulative Return | 396.24% | 54.10% | 43.16% |
| Annualized Return | 16.21% | 4.14% | 3.42% |
| Standard Deviation | 7.17% | 2.93% | 2.20% |
| Sharpe Ratio | 2.01 | 0.79 | 0.73 |
| Alpha (vs. Agg) | 14.29% | - | 0.05% |
| Beta (vs. Agg) | 0.04 | - | 0.67 |
| Correlation (vs. Agg) | 0.02 | - | 0.9 |
| % of Positive Months | 85.2% | 67.2% | 70.3% |
| Maximum Drawdown | -7.30% | -3.67% | -2.85% |
Monthly Returns: Ending September 30, 2019
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 0.59% | 0.57% | 0.58% | 1.21% | 2.43% | 0.40% | 0.07% | 0.28% | 0.02% | 6.30% | |||
| 2018 | 2.61% | 1.31% | 1.63% | 0.36% | 0.56% | 0.51% | 2.86% | 0.56% | 0.31% | 0.86% | -0.25% | -0.53% | 11.28% |
| 2017 | 0.64% | 0.69% | 1.39% | 3.33% | 1.01% | 1.05% | 0.52% | 1.54% | 0.68% | 1.29% | 1.21% | 1.57% | 15.95% |
| 2016 | -0.47% | -0.78% | 0.24% | 0.47% | 0.20% | 0.30% | 0.44% | 0.32% | 2.24% | 0.43% | 0.44% | 0.21% | 4.08% |
| 2015 | -0.02% | 0.86% | 0.58% | 0.10% | 0.21% | 0.64% | 0.43% | 0.02% | 0.18% | 0.47% | 0.29% | 0.06% | 3.87% |
| 2014 | 2.42% | 0.58% | 0.11% | 0.74% | 1.26% | 0.68% | 0.52% | 0.57% | 0.27% | 0.05% | 1.90% | 0.71% | 10.22% |
| 2013 | 8.76% | 2.45% | 1.02% | 1.48% | 2.51% | -2.96% | -0.54% | 0.41% | 1.47% | 1.97% | 0.85% | 0.49% | 18.97% |
| 2012 | 2.07% | 1.92% | 3.53% | 0.00% | 0.37% | 0.82% | 4.55% | 1.00% | 4.40% | 1.05% | 2.90% | 5.74% | 32.10% |
| 2011 | 6.27% | -0.56% | 0.13% | 0.46% | -0.45% | -1.39% | 0.76% | -2.09% | -1.91% | -1.91% | -0.52% | 5.22% | 3.68% |
| 2010 | 4.53% | 0.81% | 1.30% | 5.85% | -5.23% | 4.18% | 1.82% | 3.87% | 2.32% | -0.06% | 2.83% | 2.16% | 26.74% |
| 2009 | -1.41% | -1.29% | 5.16% | 5.33% | 6.35% | 5.33% | 4.61% | 4.37% | 5.97% | -0.88% | 6.19% | 47.03% |
Fund Documents
| Fact Sheet |  |
| Prospectus | |
| Summary Prospectus | |
| SAI | |
| XBRL | |
| Brochure | |
Distributions
Note: Distribution data will be available in August/September 2019.
Rational Special Situations Income Fund Distributions
I Share
| Ticker | Record Date | Payable Date | Monthly Distribution Amount | Reinvest Price |
|---|---|---|---|---|
| RFXIX | 9/26/2019 | 9/27/2019 | 0.0240 | 19.97 |
| RFXIX | 8/28/2019 | 8/29/2019 | 0.0366 | 19.97 |
C Share
| Ticker | Record Date | Payable Date | Monthly Distribution Amount | Reinvest Price |
|---|---|---|---|---|
| RFXCX | 9/26/2019 | 9/27/2019 | 0.0140 | 19.94 |
| RFXCX | 8/28/2019 | 8/29/2019 | 0.0329 | 19.94 |
A Share
| Ticker | Record Date | Payable Date | Monthly Distribution Amount | Reinvest Price |
|---|---|---|---|---|
| RFXAX | 9/26/2019 | 9/27/2019 | 0.0228 | 19.95 |
| RFXAX | 8/28/2019 | 8/29/2019 | 0.0342 | 19.96 |
Important Risk Information
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. The Fund is non-diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds; the Fund is subject to concentration risk. When the Fund invests in asset-backed securities and mortgage-backed securities, the Fund is subject to the risk that, if the underlying borrowers fail to pay interest or repay principal, the assets backing these securities may not be sufficient to support payments on the securities. Interest rate risk is the risk that bond prices overall, including the prices of securities held by the Fund, will decline over short or even long periods of time due to rising interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities. Lower-quality bonds, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default. Credit risk is the risk that the issuer of a security will not be able to make principal and interest payments when due. These factors may affect the value of your investment.
The Fund commenced operations by acquiring all of the assets and liabilities of ESM Fund I, L.P. (the “Predecessor Fund”) in a tax-free reorganization on July 17, 2019 (the “Reorganization”). In connection with the Reorganization, investors in the Predecessor Fund received Institutional Shares of the Fund. The Fund’s investment objectives, policies, guidelines and restrictions are, in all material respects, equivalent to those of the Predecessor Fund. However, the Predecessor Fund was not registered under the 1940 Act and, therefore, was not subject to certain investment restrictions, limitations and diversification requirements that are imposed by the 1940 Act or Subchapter M of the Internal Revenue Code, which, if they had been applicable, might have adversely affected the Predecessor Fund’s performance. The Fund’s Sub-Advisor was the investment adviser to the Predecessor Fund. The Fund’s fees and expenses are expected to be higher than those of the Predecessor Fund, so if the Fund’s expenses were applied to the Predecessor Fund’s performance, the performance would have been lower.
7084-NLD-9/4/2019 | 7086-NLD-9/4/2019
For more complete information on Rational Funds download and view a prospectus or summary prospectus now or call 1-800-253-0412 for a free prospectus or summary prospectus. You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund’s prospectus or summary prospectus, which you should read carefully before investing. Investing involves risk, including loss of principal. There is no guarantee that this, or any investment strategy, will succeed.